Walmart CEO Doug McMillon to do away with minimum wage pay in New Year

Posted at 8:30 PM, Dec 11, 2014
and last updated 2014-12-11 20:42:52-05

Wal-Mart CEO Doug McMillon, who took over the Arkansas-based business in February, told Charlie Rose on CBS This Morning that he plans early next year to raise wages so that every associate is paid more than federal minimum wage.

For years, Wal-Mart has been criticized for its treatment of its lowest paid workers. Approximately 6,000 of its 1.3 million United States employee make a minimum wage rate on average of $7.25/hr.

The company, considered the nation’s largest private employer, has also faced criticism that the low pay is transferred to tax payers.

According to a 2013 report, which zeroed in on Wal-Mart in Wisconsin because the state releases information by employer on how many workers are enrolled in its public health care program by employer, one Wal-Mart supercenter employing 300 workers could cost taxpayers at least $904,000 annually.

McMillon said he plans to fix the wage rate at the company.

“We're gonna make some changes in a few months that will create a situation where no Wal-Mart associate in the United States makes federal minimum wage,”McMillon said. “We'll be ahead of that with our starting wage.”

Reporting by CBS and CNN contributed to this article